5 ms·

Is Unity anywhere close to earning as much as you'd naively expect from a company engaging in billion dollar takeovers or is that simply another venture capital

by usrusr 5y ago

Is Unity anywhere close to earning as much as you'd naively expect from a company engaging in billion dollar takeovers or is that simply another venture capital bonfire? I feel very much incapable to guess with even the tiniest glimpse of "educated" in it, and that's despite usually being far in the "more confident than I should be" corner when it comes to stuff like this. Both seem rather unlikely to me, but it has to be one of them, if not both.

spywaregorilla 5y ago
It's a public company already. They do about a billion in revenue, growing quickly, and a net loss of about $60M.
- tim-- 5y ago
  Interesting enough though, much of Unity's profit derives from ads and payment processing. https://www.gamesindustry.biz/articles/2021-08-11-unity-revenues-rise-to-usd274m-but-losses-remain-high https://www.gamesindustry.biz/articles/2021-08-11-unity-reve... > the company noted that it's the 11th consecutive quarter during which revenue growth reached 30% or more.
  - spywaregorilla 5y ago
    I think that just means revenue sharing with developers that use their engine. Not that surprising.
    - ClimaxGravely 5y ago
      Do they have a revenue sharing model? I was under the impression it's a monthly subscription. https://store.unity.com/compare-plans https://store.unity.com/compare-plans
      - spywaregorilla 5y ago
        I think the monetization stuff (put ads in your game) is a separate service. I could be wrong.
suby 5y ago
Not sure that this really answers the question, but they're valued at around 13.6 billion with revenue for 2020 being around 752 million dollars, with an operating loss of 66ish million. Non-GAAP operating profit margin is expected to be a loss of $35 million to $45 million. https://venturebeat.com/2020/11/12/unitys-first-post-ipo-report-revenue-jumps-53-to-200-8-million/ https://venturebeat.com/2020/11/12/unitys-first-post-ipo-rep...
didntknowya 5y ago
i feel like they've given up and are going on spending sprees to catch up to UE
mbesto 5y ago
> naively expect from a company engaging in billion dollar takeovers Unity's current market cap is $48B. Doing a levered buyout of another company that is ~1/30th of your size is stupidly trivial to do with cheap credit and an asset value that size. For the uniformed - this is essentially how firms like Goldman Sachs make billions of dollars. Massively simplifying this, but they loan a portion of the $1.6B (let's say 50%) just like you would do on a house. The collateral is the stock of Unity in case they default on the payments.

by usrusr 5y ago

spywaregorilla 5y ago

It's a public company already. They do about a billion in revenue, growing quickly, and a net loss of about $60M.

tim-- 5y ago
Interesting enough though, much of Unity's profit derives from ads and payment processing. https://www.gamesindustry.biz/articles/2021-08-11-unity-revenues-rise-to-usd274m-but-losses-remain-high https://www.gamesindustry.biz/articles/2021-08-11-unity-reve... > the company noted that it's the 11th consecutive quarter during which revenue growth reached 30% or more.
- spywaregorilla 5y ago
  I think that just means revenue sharing with developers that use their engine. Not that surprising.
  - ClimaxGravely 5y ago
    Do they have a revenue sharing model? I was under the impression it's a monthly subscription. https://store.unity.com/compare-plans https://store.unity.com/compare-plans
    - spywaregorilla 5y ago
      I think the monetization stuff (put ads in your game) is a separate service. I could be wrong.

suby 5y ago

Not sure that this really answers the question, but they're valued at around 13.6 billion with revenue for 2020 being around 752 million dollars, with an operating loss of 66ish million. Non-GAAP operating profit margin is expected to be a loss of $35 million to $45 million. https://venturebeat.com/2020/11/12/unitys-first-post-ipo-report-revenue-jumps-53-to-200-8-million/ https://venturebeat.com/2020/11/12/unitys-first-post-ipo-rep...

didntknowya 5y ago

i feel like they've given up and are going on spending sprees to catch up to UE

mbesto 5y ago

> naively expect from a company engaging in billion dollar takeovers Unity's current market cap is $48B. Doing a levered buyout of another company that is ~1/30th of your size is stupidly trivial to do with cheap credit and an asset value that size. For the uniformed - this is essentially how firms like Goldman Sachs make billions of dollars. Massively simplifying this, but they loan a portion of the $1.6B (let's say 50%) just like you would do on a house. The collateral is the stock of Unity in case they default on the payments.